Hey folks!

Adani Group has shelled out around ₹50,000 crore to snap up 14 bankrupt companies through the Insolvency and Bankruptcy Code Resolution. Sounds like a plot twist in a financial thriller, right?

That’s why we made a video unravelling the reasons behind these massive investments and what they might reveal about Adani’s grand plans for the future. Click 👉🏽 here to check it out.

With that out of the way, let’s skip to the rest of the edition.

Recently, a YouTuber from Bengaluru set off a heated debate by calling New York’s tipping system a “scam”.

After paying $50 for a $45 meal, the server didn’t return his $5 change. That translates into a 10% tip. And he obviously wasn’t thrilled about it. So, naturally, he vented on social media. But to his utter horror, all he got instead of support, was a wave of backlash.

Because here’s the thing. That’s just how tipping works in the US. It’s a cultural norm. And people basically expect it.

But wait… how did tipping even become such a big deal in the US?

Well, it all started back in England around the 15th century, when people would leave a little extra cash to show appreciation for good service. It wasn’t an obligation, more like a friendly gesture. The term “tip” comes from an old English word meaning to give or hand over something.

Fast forward to the late 19th century, and wealthy Americans brought the tipping tradition back home after travelling in Europe.

While companies loved it because they could hire cheap labour and shift the payment burden onto customers, many Americans didn’t. They felt it was unfair and even undemocratic to expect people to pay extra on top of their bills.

Despite this resistance, tipping caught on, especially in the South after the Civil War. Newly freed African Americans often worked service jobs, earning little to no wages and relying heavily on tips to make ends meet.

Later, when President Franklin Roosevelt passed the Fair Labor Standards Act in 1938, it set a minimum wage for some industries excluding food services. Even when restaurants were added in 1966, they weren’t covered under the minimum wage rule. Owners could instead use a “tip credit”, paying workers lower wages, as long as tips made up the difference.

That’s how tipping went from a nice gesture to a necessity for survival.

Today, many US workers rely on tips for a big part of their income, and automated prompts even nudge you to tip.

It’s a hot topic that has even made its way into the presidential campaigns! Both former President Trump and Vice President Kamala Harris have proposed slashing taxes on tips. And that’s a big deal because in 2018 alone, US workers raked in over $38 billion in tips! That’s a lot of money on the table, literally.

So yeah, tipping in the US isn’t just about being polite. It’s a part of their culture. No wonder it came as a culture shock for our Indian YouTuber!

Here's a soundtrack to put you in the mood 🎵

Rajahin Rajjo by Shunno

Now, let’s get cracking!

What caught our eye this week 👀

Can Los Angeles go car-free for the 2028 Olympics?

We’ve been talking about the Olympics a lot in our Sunny Side Up editions lately. But we’re not done yet.

With the Paris 2024 Olympics now over and the Paralympics set to close soon, the next big thing has now caught our eye. We’re talking about the Los Angeles (LA) Games in 2028.

Yes, it’s 4 years away, but LA is already stirring up some serious chatter because the city is aiming for something bold — a car-free Olympics!

Yup, LA wants to host the greenest Olympics ever. You might remember Paris trying to do the same, but LA is throwing its hat into the ring too.

The big question, though, is how?

See, LA isn’t exactly known for its stellar public transportation. Trains and buses actually take twice as long as driving. Add to that the safety concerns around the public transport system due to the city’s rising homeless population and incidents of violence, and you’ve got Angelenos (residents of LA) choosing cars over buses and trains any day.

But LA’s got a plan. The city is making serious investments to improve its transit system. Think better buses, more rail connections and even a link between the airport and the rail network. Plus, it’s borrowing 3,000 buses from other localities and carving out special lanes just for them. There’s also talk of adding more bike lanes and encouraging remote work during the Games to cut down on traffic.

And hey, this isn’t LA’s first rodeo. The city pulled off a smooth Summer Olympics back in 1984 by convincing a million people to take buses and pushing trucks to drive during off-peak hours. But with 50% more athletes and a lot more people coming in 2028, those old tricks might need a revamp.

So, can LA really pull off a car-free Olympics? Looks like we’ll just have to wait for 4 years to find out!

Jargon of the day ✏️

This Day in Financial History 📜

27th of August, 1859 ― The world’s first commercially successful oil well is discovered in America

On this day, America struck gold, or rather, black gold (petroleum), right in Titusville, Pennsylvania, forever changing the country’s economic landscape!

Before this breakthrough, whale oil was the go-to for lighting up lamps in American homes. But since whales became scarce due to over-hunting, the hunt for alternatives began.

Enter Edwin Drake, a determined driller with a vision. Drake poured in a lot of money and endless effort into finding a cost-effective way to tap into rock oil, a venture that spanned over a year. This even led him to being dubbed “Crazy Drake”.

His perseverance finally paid off when he drilled 69 feet into the earth and hit oil. This discovery didn’t just fuel lamps; it ignited a revolution, kickstarting the Pennsylvania Oil Rush and paving the way for the booming American oil industry.

And while the oil industry hit new heights, Drake’s personal fortune didn’t quite follow suit. His breakthrough ended the whaling era and ushered in the age of petroleum.

Sadly, since he never patented his drilling method, Drake ended up financially drained.

So yeah, despite his game-changing success, he spent his later years struggling with money. But his legacy endured.

Readers Recommend 🗒️

This week our reader Thomas Kuriakose recommends reading Nexus by Yuval Noah Harari. It’s like diving into the journey or evolution of networks, from ancient times to the age of AI. Maybe, also a way to understand how interconnected our world has become.

Thanks for the rec, Thomas!

Finshots Weekly Quiz 🧩

It’s time to announce the winners of our last two weekly quizzes. And the winners are…🥁

Muskan rose and Anushi Arora! Congratulations. Keep an eye on your inbox and we’ll get in touch with you soon to send over your Finshots merch. And for the rest of you, we’ve moved the quiz to our weekly wrapup. So make sure you answer all the questions correctly by 12 noon on September 7, 2024 (Saturday) and tune in here next week to check if you got lucky.

Anyway, that’s it from us this week. We’ll see you next Sunday!

Until then, don’t forget to tell us what you thought of today’s newsletter. And send us your book, music, business movies, documentaries or podcast recommendations. We’ll feature them in the newsletter! Just hit reply to this email (or if you’re reading this on the web, drop us a message: morning@finshots.in).

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